Eximbank finances Turkish hospital project

The Export-Import Bank of Korea has provided 143 million euros ($159 million) in direct loans and loan guarantees for a hospital construction project led by Samsung C&T in Turkey, the state-run lender said Wednesday.

This is the first time that the Seoul-based bank has financed an overseas hospital construction project, it said in a press statement. 

The Turkish government-initiated project envisions a 1,875-bed general hospital to be constructed in the southeastern Turkish city of Gaziantep, with a total investment of nearly 600 million euros.

Samsung C&T, Samsung Group’s construction and trading arm, is leading the project through a consortium with Salini of Italy and Kayi of Turkey.

Financing partners include the Korea Eximbank, Korea Trade Insurance Corp., the European Investment Bank and the European Bank for Reconstruction and Development.

Eximbank’s 143 million euros consists of 71 million euros directly lent to the project itself and 72 million euros provided in guarantees on various forms of financing deals that Korean financial institutions forged with the project developer.

“Eximbank hopes this has shown a way for local financial institutions to venture overseas and participate in foreign projects,” the bank said in the statement.

By Lee Sun-young (milaya@heraldcorp.com)